With all of the recent articles and debates on Gather regarding illegal immigration, specifically with regard to Mexico, I decided to share with you, the reader, some real facts about the government and economy of our neighbors to the south.
First of all, let me point out that my intention is not to pick on Mexico or the citizens there of. Mexico is a fantastic country full of vibrant people, rich history and culture.
The reason this article focuses on Mexico is because, as many of you already know, Mexicans remain the largest number of illegal immigrants in the United States, in large part a result of the close proximity to the United States.
Enought of stating the obvious. Let's get to the brass tacks. Why are Mexicans so intent on coming to the United States by any means necessary?
Can it be a result of unemployment in Mexico?
No. The unemployment rate in Mexico in 2005 was 3.6%. The unemplyment rate in the U.S. in 2005 was 4.6%. Considering the population difference between our two nations, about 107 million in Mexico as compared to approximately 300 million in the U.S., the U.S. obviously has a much higher population of unemployed persons.
Can it be a result of Mexico's poor economy?
No. Although the U.S. remains the number one country in the world with regards to Gross Domestic Product, Mexico is not very far behind, rated at number 12 in the world and number 2 in Latin America. Furthermore, with regards to Gross National Income, Mexico ranks number 1 in Latin America. As such, it would be illogical to refer to Mexico as a "poor" nation.
As a matter of fact, Mexico is a country rich in export products, such as natrual gas and oil. In addition, Mexico has a huge and booming tourism industry.
But what is Mexico's greatest source of foreign income?
Illegal immigrants.
According to Vicente Fox, former President of Mexico:
"Our expatriate population is the biggest source of foreign income. Bigger than oil, tourism, and foreign investment."
Yes. To the tune of $20 billion in 2005. That's right, $20 billion.
As such, why would Mexico want to deter illegal immigration and cut off this huge source of income?
I mean, they could raise their own tax base, which is currently a mere 14% of their GDP, as compared to 25-28% of the U.S. GDP (Yeah, we get taxed, don't we know it!!!).
But of course, if they raise taxes, then the Mexican oligarchic elite would have to pay more. And why should they?
They could raise the wages in Mexico.
But of course, then once again, the Mexican elites would have to pay higer wages and cut into their own profits. In addition, how could they attract so many foreign companies if their workers earned a fair wage? Let's face it, the attraction to export labor, much like the U.S. does, is cheap labor.
Besides, why raise wages in order to collect more taxes? If the tax rate in Mexico is 14% of GDP, that means that in 2005, $100 billion came by way of domestic taxes on the 107 million domestic population. In addition, Mexico reaped the bemefits of an additional $20 billion, that's 20% of what the country earned from it's entire tax, from an estimated 5 million expatriated Mexicans residing in the U.S. In other words, .05% of the Mexican population, which resides inthe U.S., contributed an extra 20% to their "tax base". Incredible.
Not to mention what many do not realize-the Customs and Immigration taxes Mexican expatriates pay upon RETURN to Mexico-even for a visit! Any goods or products, a permit to enter the country, and if you're driving, a vehicle permit based on where you are travelling to, all extra taxes that Mexican expatriates pay the Mexican government.
So, while were here trying to figure out how to solve the problem, let's start by looking at the source. Let's change the way we do business with Mexico. The Mexican government has been all over the news, calling us bad neighbors, threatening to file lawsuits against the United States, calling the U.S. a "racist" nation...all the while reaping the benefits of our economic system.
I say we do the following:
When you go on vacation, DON'T go to Mexico.
The U.S. government should bill Mexico for all of the services rendered to Mexican expatriates. Education, medical care, ANY assistance. Bill it to the Mexican government, not the U.S. citizenry.
The U.S. should stop providing financial aid to Mexico-I mean, isn't $20 billion enough?
The U.S. should not invest in Mexico-All U.S. companies located in Mexico should return home. Or find other countries to invest in.
The U.S. should tax all remittances to Mexico-Not taxing the individual sending the remittance, but taxing the Mexican postal service upon receipt.
Anyway, enough of my crazy ideas. Some may be feasible, and some I say with tongue firmly planted in cheek. What are your thoughts? Please let me know what your opinion is on this topic.
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Comments: 23
i think the north american union will make all of this moot. canada and the united states and mexico will join. i don't think they will build the fence. they're not even serious. they allocated a "down payment" on it.
the economic shock of the north american union will be large, greater to the poorest nation, greater to the largest nation. 2010, that's the year it gets implemented.
mexico was fast turning into a welfare state. but their solution was hurting the middle class. the north american union is a radical solution. will mexicans outpopulate americans and canadians? yes, i could see that happening. will that be good? dunno. this experiment hasn't occurred yet. but it will be occurring one way or another, no matter what we do.
we cannot turn back the clock. the border situation has been going on for years. several presidents did nothing. several congresses did nothing. we cannot turn back the clock.
Doubtful.
So, you argue one point out of about 10. So, what's your point? My point is that the Mexican gov't does nothing to help the situation.
Daniel,
The stats do sound good. Only thing is that only a very small percentage of the Mexican elite actually benefit from the robust Mexican economy. Besides, if you were to go south, you could not own property, get a driver's license, or any type of MExican ID, or own a business as an individual, because those are rights reserved for Mexican citizens.
The US is "rich" by comparison, too - but we still have terrible poverty in this country. People are still choosing between buying groceries or paying bills. The elders are debating whether to buy this med or the other because they can't afford both. Dismissed.
If people have no jobs, there's nothing to tax. Dismissed.
If there are no jobs, there are no wages to raise. Dismissed.
The 20B that's being sent back to Mexico could be filtered right back into the US economy if these people were work authorizations and SS cards. If their families were allowed to remain together, the money would be spent at the homebase. Dismissed.
Does that cover it? If I missed something, let me know.
"The 20B that's being sent back to Mexico could be filtered right back into the US economy if these people were work authorizations and SS cards. If their families were allowed to remain together, the money would be spent at the homebase."
Are you saying that we should allow the "families" of all immigrants, legal or otherwise, to come to the U.S. to be with them?
Just realize the reason that they're sending the money home. It's not to be un-American or to further Mexico's economy or anything else of malicious intent. They just gotta feed their babies, man. And if their babies are abroad, that's where the money is going to go.
O.K., let me ponder that overnight and I'll come back.
"That's because, according to the paradigm used by the government's statistics-gathering agency, INEGI, any person who has worked at least one hour for monetary compensation during the previous one-week period is employed. By that standard, the man hawking pirated CDs on the Mexico City subway is also employed, as is the woman selling candy on the sidewalk or the teenager scrubbing car windshields at stoplights for spare change."
I still agree with your post, but wanted to point out how Mexico fudges their unemployment numbers. I got it from http://www.geocities.com/jonclark500/stories/jobs.html, and it purports to be from the Miami Herald, June 11, 2005.
Now I have to finnish the post, and read the other comments.
More to come...
You can look at statistics, poverty on both sides of the border, whatever. The bottom line is that both governments are at fault. And the population, at least on this side of the border, is getting fed up.
Philip, I'd like to see some news of the Mexican efforts to secure the border...I've heard much to the contrary...not that they're not doing anything, but that they certainly aren't doing enough.
Thanks again for all your posts.
Mexico gives their natives no options except legal or illegal immigration.........
Here there are very few immigrants on Welfare. California laws are
pretty strict these days. Most immigrants are afraid to seek aid here.
Most Mexican immigrants are working 18 hour days in the fields or performing hard labor, at least in my area.
That's part of the problem. Although these workers are probably happy to do so, what the employer is doing is exploitation. I just don't think it's right on so many levels. I agree that forcing people who are on welfare to do these jobs is probably not a solution, but there must be a way to protect the workers, i.e., force the employers to follow the legal process for bringing in laborers from abroad.